Prices for beer, alcohol and cigarettes likely will go up several baht next month as producers pass on a new 2% sports tax.
The Sports Act passed by the National Legislative Assembly in January and pending publication in the Royal Gazette will require manufacturers and distributors of alcoholic beverages and tobacco products to contribute to a new sports fund at the rate equivalent to 2% of the excise taxes they pay the Finance Ministry each year.
The ministry will collect the money and submit it to the sports fund, which was set up to support sports and Thai athletes.
New levies typically are passed on to customers. The increase would translate into price increases of three to five baht.
The sports fund is expected to grow by four billion baht over a year, as beer companies pay excise taxes totalling 76 billion baht, liquor makers and distributors 64 billion baht and tobacco companies 61 billion baht.
Thailand Tobacco Monopoly told Thai media that its contribution to the sports fund would be about 2.8 billion baht annually, while the cigarette maker earns six billion baht in net profit. The monopoly currently has to contribute 1.6 billion baht to the Thai Health Promotion Foundation and Thai Public Broadcasting Services.